Has anyone used TurboTax for this scenario? I'm wondering if it handles this situation correctly or if I should go to a professional preparer this year.

I went through this exact same situation last year and it was really confusing at first! You absolutely need to file Schedule H even though your payroll service is making the estimated payments. Here's what I learned: The Schedule H shows the IRS that you had household employment tax obligations, while the 1040-ES payments you already made get credited toward your total tax liability. Think of it this way - Schedule H calculates what you owe, and the estimated payments show what you've already paid toward that debt. Your payroll service should provide you with a year-end summary showing total wages paid, Social Security, Medicare, and federal unemployment taxes. Use those exact numbers on Schedule H. The estimated tax payments you made throughout the year will appear as credits on your 1040, so you won't pay twice. One tip: double-check that the total of your quarterly estimated payments matches (or comes close to) the total household employment taxes shown on Schedule H. If there's a big discrepancy, you might need to make an additional payment or expect a refund. I was terrified of messing this up, but once I understood that Schedule H is just reporting what happened (not creating a new tax bill), it made much more sense!

As someone who recently went through the Intuit Academy Tax Level 1 certification process, I can definitely say that 82% on your first practice test is a strong start! Most people I know scored in the mid-to-high 70s on their initial attempt. The key thing to remember is that the practice tests are designed to be learning tools, not just assessment tools. Each one covers slightly different aspects of tax law, so working through all of them is absolutely worth it - you'll encounter scenarios and edge cases that might not show up in just one or two tests. From my experience, I'd suggest aiming for consistent scores in the 88-92% range before scheduling your actual exam. The real test definitely has more complex scenarios that require you to synthesize multiple concepts, and the time pressure can affect performance even if you know the material well. One thing that really helped me was keeping a simple notebook where I wrote down not just which questions I got wrong, but the specific tax principle I missed. For example, "confused qualifying child age test with qualifying relative gross income test" or "forgot that combat pay is excludable but can be elected as earned income for EITC." This helped me see patterns in my mistakes and focus my review time more effectively. The actual exam format is very similar to the practice tests, but expect more "what if" scenarios and fewer straightforward definitional questions. Good luck with your studies!

An 82% on your first practice test is actually quite impressive! I just completed my Intuit Academy Tax Level 1 certification a few weeks ago, and I remember feeling similarly uncertain about my readiness when I was scoring in that range initially. What I found most helpful was creating a study plan that focused on incremental improvement rather than trying to jump to 90% immediately. I aimed to improve my score by 2-3% on each subsequent practice test, which felt more manageable and helped build confidence along the way. The areas that consistently trip people up are filing status determinations (especially head of household qualifications), dependency tests, and the distinction between adjustments to income versus itemized deductions. Make sure you can work through these scenarios step-by-step rather than just recognizing the right answer. One practical tip: when reviewing wrong answers, don't just read the explanation - try to rework the problem from scratch to make sure you truly understand the logic. I found that this approach helped me tackle those complex synthesis questions on the actual exam that combine multiple tax concepts. The real exam is definitely similar to the practice tests in format, but expect more nuanced scenarios where you need to apply exception rules or handle unusual circumstances. Keep working through all the practice tests - each one teaches you something different. You're off to a great start!

This has been such an informative thread! I'm in a similar situation with my freelance graphic design LLC and was making the same mistake of thinking I could somehow bypass taxation by contributing directly from my business account. Just to summarize what I've learned here for anyone else reading: You MUST pay yourself from the LLC first, pay taxes on that income, and then use the after-tax dollars for Roth contributions. There's no way around this - the IRS requires Roth contributions to come from properly reported earned income. The Solo 401(k) with Roth option sounds like the best path forward for those of us with LLCs making decent income. Being able to contribute up to $23,500 in Roth money (plus potentially more in traditional contributions) versus just $7,000 with a regular Roth IRA is a huge difference for retirement planning. One question I still have - if I set up a Solo 401(k), can I still contribute to my existing Roth IRA in the same year, or do I have to choose one or the other? I've had my Roth IRA for about 8 years and would hate to lose that 5-year clock if possible.

This thread has been incredibly helpful! I'm a tax attorney who works with a lot of small business owners, and I wanted to add a couple of important points that might save people some headaches: First, regarding the S-Corp election discussion - there's a "reasonable salary" requirement that the IRS takes seriously. If you elect S-Corp status, you MUST pay yourself a reasonable W-2 salary for the work you perform, even if it means higher payroll taxes. You can't just pay yourself $20k salary and take $70k in distributions to avoid payroll taxes. The IRS has been cracking down on this, and penalties can be severe. Second, for those considering Solo 401(k)s, remember that if you ever hire employees (even part-time), you'll generally need to include them in the plan, which can get expensive and complicated. A SEP-IRA might be a better choice if you think you'll expand your team. Finally, I'd strongly recommend working with a qualified tax professional before making major changes to your business structure or retirement strategy. The tax code is complex, and what works for one person's situation might create problems for another. The services mentioned in this thread (like taxr.ai) might be helpful for analysis, but they shouldn't replace professional advice for significant decisions. Great discussion overall - it's refreshing to see people taking retirement planning seriously!

I'm glad you caught this mistake so quickly! I went through something similar last year when I accidentally contributed to the wrong 529 account (my nephew's instead of my son's). The key is definitely acting fast before any automatic investment happens. Since you called within 30 minutes, you should be fine. Most 529 plans have a grace period before they invest new contributions - usually 24-48 hours. Your plan administrator was correct about the no-tax-consequences rule as long as it's still in cash. One tip: once you get this sorted out, consider setting up account nicknames or alerts in your banking app to prevent this from happening again. I learned that lesson the hard way! Also, some banks let you set up confirmation screens for transfers above certain amounts, which has saved me from similar mistakes.

I had a similar panic moment last year when I accidentally transferred $3,000 to my son's 529 instead of paying off my credit card! The good news is that you caught it super early - 30 minutes is nothing in 529 time. Your plan administrator is absolutely right. As long as the money is still sitting in the cash position (which it almost certainly is after just 30 minutes), you can withdraw it without any tax implications. It's treated as an administrative correction rather than an actual 529 distribution. Most plans don't automatically invest until at least the next business day, and many wait 2-3 days to allow for exactly these kinds of corrections. Just make sure you follow up quickly to get the withdrawal processed before any automatic investment kicks in. One thing that helped me after my mistake was setting up a separate "staging" savings account that I use as an intermediate step for all large transfers. That extra step gives me time to double-check where the money is actually going before the final transfer. Might be worth considering once you get this sorted out!

I went through this exact same situation two years ago and wanted to share what worked for me. The anxiety was overwhelming at first, but it really does get resolved more easily than you'd expect. Here's what I learned: File your amended return (Form 1040-X) ASAP, even though you haven't been audited yet. Don't wait for them to send you a notice too. When I procrastinated on mine, I ended up getting hit with additional interest charges that I could have avoided. For your husband's audit response, include these specific documents: - Certified copy of your marriage certificate - A brief, straightforward letter explaining it was an unintentional error - Form 1040-X for his amended return - Any supporting documentation showing you live at the same address The key is to be completely transparent and respond within the timeframe they give you. I was terrified they'd think we were trying to cheat, but the IRS agent I eventually spoke with said they can usually tell the difference between honest mistakes and intentional fraud pretty easily. One more thing - when you recalculate your taxes for married filing separately, double-check that you're both using the same method (either both taking standard deduction or both itemizing). That's another common mistake that can trigger additional notices. You're going to get through this! The mistake feels huge right now, but it's actually pretty routine for the IRS to handle.

I'm so glad I found this thread! I'm actually dealing with the exact same situation right now - my partner and I both accidentally filed as single instead of married filing separately, and we just received our first audit notice yesterday. Reading through everyone's experiences has been incredibly reassuring. What's really helping me feel better is seeing how many people have gone through this exact mistake and had it resolved without major penalties. I was absolutely panicking when I saw that audit letter, convinced we were going to be in massive trouble with the IRS. Based on all the advice here, I'm planning to: 1. Respond to the audit notice immediately with our marriage certificate and an explanation letter 2. File my own amended return (Form 1040-X) this week, even though I haven't been audited yet 3. Make sure we both use the same deduction method when recalculating 4. Keep detailed records of every interaction and document submission The tip about asking for first-time penalty abatement is something I definitely wouldn't have known about otherwise. We've never had any tax issues before, so hopefully they'll be understanding. Thank you to everyone who shared their real experiences - it's made this terrifying situation feel much more manageable!